Vanguard is the No. 2 asset manager in the world. And the best Vanguard ETFs are among the largest and most respected investment vehicles on Wall Street.
With more than $9 trillion in assets under management, the revolutionary firm trails only BlackRock, and by a modest margin.
Vanguard founder John C. Bogle is credited with popularizing low-cost, passive funds, and the best Vanguard ETFs are generally index funds that stick to a fixed list of components rather than engage in costly or complex strategies.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
They're not flashy. And a consistent and predictable approach may even bore some investors, traders and speculators.
But it's hard to argue with the long-term outperformance of the low-cost, index-fund-based strategy.
What makes for the best Vanguard ETFs?
A long-term, hands-off approach: Many exchange-traded funds claim to provide outperformance by overlaying complex screening methods onto the stock market and changing out holdings based on the latest info.
Most research shows this "active management" approach is ineffective.
According to data from S&P Dow Jones Indices, the majority of actively managed funds involving large-cap stocks have underperformed the S&P 500 Index on an annual basis going back to 2010.
Minimize fees to maximize profits: The challenge with active funds is simple. Even if you do get a small amount of outperformance, the related expenses erode those profits.
This includes all manner of costs including tax inefficiency and higher brokerage fees.
Investors should consider the "opportunity cost" higher fees create.
Every penny you pay in fees reduces current profits. And it erases cash that could be invested and grow over time.
The best Vanguard ETFs put more of your cash to work for you instead of your overpriced asset manager.
Don't forget DRIP: A dividend reinvestment program, or DRIP, reinvests profits from your investments rather than having it sit idle in your account.
The best Vanguard ETFs offer a no-fee, no-commission reinvestment program that allows you to reinvest your distributions and supercharge your returns over time.
The best Vanguard ETFs to buy now
The Vanguard funds featured here all feature rock-bottom fees, large asset bases and long trading histories.
Here are the best Vanguard ETFs to buy now.
Data is as of March 24.
ETF | Expense ratio | Header Cell - Column 2 |
|---|---|---|
Vanguard S&P 500 ETF (VOO) | 0.03% | Row 0 - Cell 2 |
Vanguard Total Stock Market ETF (VTI) | 0.03% | Row 1 - Cell 2 |
Vanguard High Dividend Yield Index ETF (VYM) | 0.06% | Row 2 - Cell 2 |
Vanguard Information Technology ETF (VGT) | 0.09% | Row 3 - Cell 2 |
Vanguard Total International Stock ETF (VXUS) | 0.05% | Row 4 - Cell 2 |
Vanguard S&P 500 ETF
- Assets under management: $629.1 billion
- Expense ratio: 0.03%, or $3 per year for every $10,000 invested
The SPDR S&P 500 ETF Trust (SPY) is the oldest S&P 500 index fund out there, but the Vanguard S&P 500 ETF (VOO) recently surpassed it as the largest ETF as measured by assets.
That's because VOO remains the go-to option for most long-term investors thanks to its low-cost structure and its exposure to the biggest names on Wall Street.
SPY charges 0.095% annually vs just 0.03% for VOO. Both are passively managed funds tied to the S&P 500 Index of the largest U.S. corporations.
And there's no reason for most small-time investors to pay more for exposure to the exact same holdings.
That list is led by must-own names like Apple (AAPL) and Microsoft (MSFT).
If you want to play the U.S. stock market over the years to come and do it efficiently, this is one of the best Vanguard ETFs to buy right now.
Vanguard Total Stock Market ETF
- Assets under management: $456.1 billion
- Expense ratio: 0.03%
Nearly as large but just as cheap, the Vanguard Total Stock Market ETF (VTI) is a one-stop shop for investors who want exposure to the whole U.S. stock market in a single vehicle.
More than 3,600 different stocks make up this fund, representing all sectors up and down the market-cap scale.
The Vanguard Total Stock Market ETF does not treat every component equally. And it's weighted heavily toward the largest stocks, so no small-start-up is going to sink your portfolio.
It's the largest ETF by assets outside the massive S&P 500 index funds such as VOO.
A well-established, more diversified option for buy-and-hold investors, VTI is one of the best Vanguard ETFs to buy right now.
Vanguard High Dividend Yield Index ETF
- Assets under management: $59.5 billion
- Expense ratio: 0.06%
Slightly smaller than VTI but still with tens of billions of dollars under management, the Vanguard High Dividend Yield Index ETF (VYM) is one of the best Vanguard funds to buy for investors looking to reduce their risk profile and tap into long-term income potential.
VYM focuses on stocks that pay above-average dividends, with a total yield of about 2.7% right now that's two times the dividend yield of the S&P 500.
Apart from the regular income, dividend investment strategies highlight companies capable of consistent profit and payout growth. These businesses generate ample cash flow, often based on operational excellence.
VYM is well-diversified, with about 500 total holdings. But it is biased toward the financial sector, with about a quarter of assets in banks and insurers.
Top holdings include megabank JPMorgan Chase (JPM), chipmaker Broadcom (AVGO) and energy icon Exxon Mobil (XOM). These blue chip names are good ballast for one of the best Vanguard ETFs.
Vanguard Information Technology ETF
- Assets under management: $80.2 billion
- Expense ratio: 0.09%
The flip side of low-risk dividend investing is speculating in high-growth tech stocks, with an emphasis on plowing cash into future opportunities rather than returning profits to shareholders.
That's what the Vanguard Information Technology ETF (VGT) has to offer: tech exposure to the exclusion of all others.
VGT's portfolio is composed of roughly 320 different stocks in the sector, ranging from the big names you know and love such as Microsoft and Apple as well as Nvidia (NVDA) plus smaller hardware manufacturers and software firms.
If you take a long view of the stock market, it's difficult to imagine tech stocks won't continue to be the biggest and most successful companies.
Their business models are light on raw materials and employees, and they're satisfying what seems an ever-expanding appetite for disruption.
If you're bullish on the high-tech future of AI, cloud computing and similar processes, VGT is one of the best Vanguard ETFs to buy now.
Vanguard Total International Stock ETF
- Assets under management: $84.3 billion
- Expense ratio: $0.05%
Each of the four funds we've discussed so far slices up the U.S. stock market in different but efficient ways.
Businesses beyond America's borders have a lot to offer, too. That's become particularly clear so far in 2025, with Asian and European stocks significantly outperforming U.S. big tech and blue chip stocks.
The Vanguard Total International Stock ETF (VXUS) gets you that overseas exposure.
VXUS is an "ex-U.S." offering designed to exclude companies in the United States and to ensure holdings don't overlap with any domestic stock ETFs.
A massive portfolio of nearly 8,500 stocks does include plenty of familiar names, such as China-based Tencent Holdings (TCEHY), Germany-based SAP (SAP) and Netherlands-based ASML Holding (ASML).
Big international businesses such as these often provide just as much upside as U.S. names. And broadening your exposure via these overseas stocks can help smooth out volatility for you and your portfolio.
VXUS is one of the best Vanguard ETFs to buy because it accomplishes these worthy objectives.
Related content
- Kip ETF 20: The Best Cheap ETFs You Can Buy
- How to Invest in ETFs for Beginners
- Investing Mistakes Beginners Make and How To Avoid Them
-
Trump Movie Tariff: Will Ticket Prices Soar if Hollywood Faces a 100% Import Tax?Tariffs Trump’s proposed 100% tariff on foreign films threatens global productions and your wallet.
-
Holding Wealth: Why Retirees Shouldn't Focus on Leaving an InheritanceFrom funding a college education to paying for long-term care or simply treating your family, there are plenty of reasons to use your hard-earned wealth now.
-
The Future of Opportunity Zones: Outlook for 2025 and BeyondThere are three potential paths forward for this innovative tax incentive program that's set to expire in 2026.
-
How Private Equity in Your Portfolio Could Boost ReturnsAnd reduce volatility. A few decades ago, private equity was considered a 'cottage industry.' Now, it is a multitrillion-dollar asset class.
-
Is Your Retirement in Danger of Crumbling?Ignoring any of these five essential financial pillars could put your future at risk. Take a moment to make sure you haven't overlooked anything.
-
Three Financial Planning Strategies for When Markets FallOverall, stay the course, but these three strategies are ways investors can make market volatility work to their benefit.
-
Seven Steps to Build Your Billion-Dollar Business TodayThe future might be uncertain, but 'right now' is always a great time to dive in and solve someone else's problems with your new business.
-
5 Mother's Day Gift Ideas That Are Also Good Long-Term InvestmentsMother's Day gifts that also serve as long-term investments, where value will grow over time.
-
My First $1 Million: Semiretired Entrepreneur, 64, NashvilleEver wonder how someone who's made a million dollars or more did it? Kiplinger's new My First $1 Million series uncovers the answers.
-
Eight Ways Retirees Can Have Fun Despite Rising PricesHigher prices are a bummer for everyone, but if you're a retiree or on a fixed income, how do you still have a good time without breaking the bank?
